cvoc

1. DAVE WILLIAMS
Vice President,
Knight Transportation

2. Overview
• What do fleets consider when buying?
• What Govt regulations have changed
decision making?
– Federal Regs
– State Regs (California)
• What other trends are coming and going?

3. Fleet Buying Decisions
• Historically, Acquisition Price and
Residual Value have ruled the day
• Operating Costs are a more substantial factor today
• Fuel and Downtime are heavyweight Operating Costs
– Fuel Cost and Greenhouse Gas Regs
– Hours of Service, Driver Retention, and Emissions Complexity
• Capital Considerations keeping fleets from refreshing at 1990’s rates
A Math Equation
Acquisition Price +
Operating Costs –
Residual Value =
Total Cost of Ownership

4. Acquisition Price +
Operating Costs –
Residual Value =
Total Cost of Ownership
Govt Regulations
Federal
• 2002 EGR - Acq Price Op Costs Res Value
• 2007 DPF - Acq Price Op Costs Res Value
• 2010 SCR - Acq Price Op Costs Res Value
• 2014+ GHG - Acq Price Op Costs Res Value
State (California)
• TRU - Acq Price Op Costs Res Value
• GHG - Acq Price Op Costs Res Value
• Engine - Acq Price Op Costs Res Value
Game Changers

5. Coming and Going Trends
Coming
• Weight reductions
• Automated manual transmissions
• Safety Technologies
• Anything Fuel savings
• Alternative Fuels
• Economic Driver Retention Features
• High Tech Telematics
• Remote Diagnostics
Striped Socks & Bell Bottoms
Going
• Alternative Fuels
• Paper log books
• Under-capitalized carriers
• Bad Public Trucking Image
(needs to go)
Acquisition Price +
Operating Costs –
Residual Value =
Total Cost of Ownership